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In the world of sales, understanding and managing accounts is crucial for business success. This involves analyzing and optimizing account performance to ensure that your business is maximizing its potential for growth. Account analysis allows businesses to understand the various factors that contribute to their overall sales performance and identify areas for improvement.
An account refers to the organization you are trying to win deals for. In many businesses, an account can have multiple deals, such as upsells or repeat business. Account analysis becomes a significant factor for businesses where one account can lead to more than one deal.
We can’t sell ourselves out of bad account management. Knowing our account factors is critical to sales growth
Account analysis helps businesses optimize account performance in addition to individual deals. For example, an engineering firm offering tooling, consulting services, and buildouts must consider account performance to ensure their services are provided effectively and profitably. They can analyze accounts to determine which services are most in demand and have the highest return on investment (ROI). Businesses can also identify trends in accounts, such as purchase frequency, location, or customer type, to inform marketing and sales strategies.
Several key metrics aid in account analysis:
Active Accounts are the number of accounts currently maintained by the business. Increasing the number of Active Accounts is essential for business growth.
The New Account Average Sale metric indicates the average value of all deals won for new accounts. This helps to determine if the sales team is successful in increasing pricing or not.
The Average Lifetime Value represents the average total revenue accounts bring in throughout their entire relationship with the business. Increasing the Average Lifetime Value is a primary goal for any sales organization.
Future Account Value represents the expected remaining future value to be earned on accounts as they mature into their lifetime. A growing Future Account Value signifies an accelerating sales engine.
Account Journeys refer to significant milestones in the business relationship with customer accounts. Analyzing the progression of accounts through their journey can provide valuable insights for sales pipelines.
Churn refers to accounts lost due to inactivity or cancellation. Minimizing churn is crucial for business growth.